The Fidelity Select Technology mutual fund (FSPTX) is an actively managed fund that invests in companies within the technology sector, focusing on long-term capital appreciation. Launched in 1986, it's one of the oldest technology-focused mutual funds.
FSPTX pools money a diversified portfolio of technology stocks. The fund's managers select companies they believe will outperform the market. As of 2023, it holds positions in over 100 companies, with top holdings including Apple, Microsoft, and Nvidia.
The fund primarily invests in large-cap technology companies but may also include mid-cap stocks. Its portfolio spans various subsectors:
| Subsector | Examples |
|---|---|
| Semiconductors | Nvidia, Advanced Micro Devices |
| Software | Microsoft, Adobe |
| Hardware | Apple, HP |
| IT Services | Accenture, IBM |
Investors seek FSPTX for exposure to the technology sector without picking individual stocks. Its long track record and active management appeal to those who believe in the sector's growth potential. The fund has outperformed the S&P 500 over 10-year periods, though past performance doesn't guarantee future results.
Suppose an investor contributed $10,000 to FSPTX in January 2013. By January 2023, their investment would have grown to approximately $45,000, assuming reinvested dividends. This reflects an average annual return of around 17%. For comparison, the S&P 500 returned about 12% annually over the same period.
One non-obvious fact: FSPTX sometimes invests in smaller, high-growth companies. In 2022, it held positions in lesser-known firms like Super Micro Computer and Marvell Technology, which can drive significant gains if they succeed.